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RCIPMW, AFFORDABLE BROADBAND CONNECTIVITY FOR MALAWI

RCIPMW, AFFORDABLE BROADBAND CONNECTIVITY FOR MALAWI. Overview of the presentation . STATISTICAL BACKGROUND RATIONALE FOR THE PROJECT PROJECT OBJECTIVE AND DESCRIPTION . STATISTICAL BACKGROUND . STATISTICAL BACKGROUND . ICT revolution in Africa

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RCIPMW, AFFORDABLE BROADBAND CONNECTIVITY FOR MALAWI

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  1. RCIPMW, AFFORDABLE BROADBAND CONNECTIVITY FOR MALAWI

  2. Overview of the presentation • STATISTICAL BACKGROUND • RATIONALE FOR THE PROJECT • PROJECT OBJECTIVE AND DESCRIPTION

  3. STATISTICAL BACKGROUND

  4. STATISTICAL BACKGROUND ICT revolution in Africa The total number of telephones in Sub-Saharan Africa has increased by >14 times in 10 years

  5. Growth of the Telecom Sector in Malawi Malawi

  6. Comparison of international call rates 2006 2006

  7. Comparison of Mobile Rates Effective revenue per calling minute (Mobile operators, 2006)

  8. Comparison of broadband penetration

  9. 6 50 40 30 20 10 0 OECD SSA 2,500 US$ per container 2,000 1,500 1,000 500 0 OECD SSA Economic implications of the digital divide 4x longer World bank 2007 At more than 2x the cost • $300 Billion Industry … only 10% realized • India / Canada / Ireland have captured 75% of the realized market

  10. PROJECT RATIONALE

  11. From the digital divide to digital advantages • Economic Growth • Broadband can be an effective tool in enhancing economic efficiency in Malawi and therefore growth of any sector in the economy • Broadband can spur new business models and therefore growth of the ICT sector • Broadband is a platform to launch advanced development/commercial services • ICTs link people across geographical boundaries: global village

  12. PROJECT OBJECTIVE AND DESCRIPTION

  13. PROJECT OBJECTIVES • To address the Missing Gap (coast connectivity) • To improve quality , affordability and availability of broadband

  14. RCIPMW project approach • Open access and pro-competition format for all network elements • Sector wide approach to facilitate commercial service uptake and the participation of diverse role players • PPP model of implementation for efficiency, private sector resource mobilisation • Private ownership and operation of network infrastructure elements • Redundancy/diversity of routes, cables and landing stations to enhance competition

  15. RCIPMW project description • RCIP is multi-lateral project to connect to IO submarine cables • Funding sourced from the WB • 2 year rollout plan • Kenya, Burundi , Madagascar, Rwanda have benefited • Malawi component awarded the sum of US$ 20 million • Submarine cable expected to be operational by 2010 • PPP model to be used for both wet and dry portions • GOM is a long termcapacity pre-purchaser • PC designated implementation unit

  16. ENABLING ENVIRONMENT Capacity Building and Advisory Support Regulatory Reform Support Environmental Management and Resettlement Monitoring and Evaluation & Communications CONNECTIVITY Pro-competition Open Access Fibre Connectivity to the Coast Virtual Landing Point Targeted Beneficiaries Project components

  17. Project Components Cont’d 3. PROJECT MANAGEMENT • RCIPMW Establishment and Set up • Project Steering Committee (MACRA, MICE, MoF, MoPDC, NRA, MoLNRE, MoJ)

  18. Progress to date • Stakeholder consultations during the preparatory stages - completed • Covenant Requirements of the IDA – almost complete • Authorisation Bill - passed by Parliament on 14th July 2009 • Recruitment and Appointment of Project Staff - PM, FMS, PPS • Project Appraisal Document (PAD) – Country Annex Issued • Environmental Social Management Framework – done • Resettlement Policy Framework – done

  19. Work in progress and outstanding items • The Project Work Plan for period August 09 to an 11 - in progress • The drafting of TORs governing consultants, technical advisers and goods suppliers – in progress • Recruitment of consultants and technical advisers - outstanding • PPP broadband connectivity tender – outstanding • VLP tender – outstanding • Targeted institutions sub component – outstanding • Legislation/regulatory framework review/reform (other parties responsible) – outstanding

  20. Programme expectations • Government launches tender to supply broadband regional connectivity from Malawi to Dar-Es-Salaam • Operators build Malawi-Tanzania high capacity hop • Government signs long-term supply contract with winning bidder • Bidder owns and operates network infrastructure under strict conditions • A VLP is established in Malawi granting all operators and ISPs equal access • There is an up to tenfold drop in broadband charges

  21. For more information, please contact :The CEO The Privatisation CommissionP.O. Box 937Blantyre.Tel: 01 823 655 Fax: 01 821 248 E-mail: info@pcmalawi.org

  22. Thank You for Your Attention

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